Ganga Papers India reports Rs 5.96 crore half-year operating cash

Ganga Papers India Limited generated Rs 5.96 crore of net cash from operating activities in the half year ended September 30, 2026, reversing an Rs 3.00 crore outflow a year earlier. A Rs 6.04 crore inventory release and Rs 7.65 crore increase in trade and other payables offset an Rs 11.01 crore build-up in trade and other receivables.

How did Ganga Papers India turn operating cash flow positive?

Ganga Papers India turned operating cash flow positive through working-capital movements, with cash generated from operations reaching Rs 6.13 crore in the half year ended September 30, 2026, compared with a Rs 3.00 crore cash deficit in the corresponding 2025 half year. After Rs 16.59 lakh of income-tax payments, net operating cash flow was Rs 5.96 crore, against a Rs 3.00 crore outflow a year earlier.

Profit before tax rose to Rs 1.42 crore from Rs 81.96 lakh, while operating profit before working-capital changes increased to Rs 3.45 crore from Rs 3.21 crore. The change before working capital was smaller than the overall reversal in operating cash flow, indicating that inventory, receivables and payables movements accounted for the larger part of the shift.

What working-capital movements supported Ganga Papers India cash flow?

Ganga Papers India released Rs 6.04 crore from inventories during the September 2026 half year, compared with an Rs 5.83 crore inventory use in the prior-year period. Its inventory balance declined to Rs 18.34 crore at September 30, 2026, from Rs 24.38 crore at March 31, 2026, broadly corresponding with the inventory-related cash inflow in the cash-flow statement.

Trade and other payables supplied Rs 7.65 crore of cash in the period, higher than the Rs 3.24 crore contribution in the half year ended September 30, 2025. Trade payables stood at Rs 23.23 crore at September 30, 2026, up from Rs 16.06 crore at March 31, while total current liabilities rose to Rs 66.02 crore from Rs 61.89 crore.

The inventory release and increase in payables together provided Rs 13.69 crore, exceeding the Rs 11.01 crore cash absorbed by trade and other receivables. This produced a positive combined contribution from these working-capital movements in the 2026 half year, unlike the comparable 2025 period, when inventory and receivables were both cash uses.

Did receivables rise as Ganga Papers India sales increased?

Yes. Ganga Papers India recorded an Rs 11.01 crore rise in trade and other receivables in the half year ended September 30, 2026, compared with an Rs 3.82 crore increase a year earlier. Trade receivables on the balance sheet rose to Rs 51.04 crore at September 30, 2026, from Rs 41.30 crore at March 31, 2026.

The receivables increase occurred alongside higher revenue from operations, which rose to Rs 170.39 crore in the September 2026 half year from Rs 132.06 crore in the previous-year half. Total revenue increased to Rs 179.43 crore from Rs 133.01 crore, while profit for the period rose to Rs 1.06 crore from Rs 61.33 lakh.

The comparison shows that a larger amount of cash was tied up in receivables as revenue increased. The Rs 11.01 crore receivables movement exceeded the reported Rs 1.42 crore profit before tax, making the inventory reduction and higher payables important to the reported operating cash inflow.

Where did Ganga Papers India operating cash go after working capital?

Ganga Papers India used Rs 2.01 crore in investing activities and Rs 7.89 crore in financing activities in the September 2026 half year. Investing cash use included Rs 2.06 crore invested in fixed deposits and bonds, partly offset by Rs 4.48 lakh of interest on fixed deposits and bonds and Rs 57,000 received from government authorities.

Financing outflows included Rs 3.63 crore of net working-capital loan repayment, Rs 3.38 crore of related-party loan repayment and Rs 91.41 lakh of interest paid. The company also reported Rs 2.67 lakh of term loans from banks, resulting in a net financing cash outflow of Rs 7.89 crore.

As a result, cash and cash equivalents fell by Rs 3.94 crore during the half year, from Rs 4.05 crore at the beginning of the year to Rs 10.87 lakh at September 30, 2026. The balance sheet also showed bank balances other than cash and cash equivalents of Rs 3.29 crore at September 30.

How do Ganga Papers India half-year cash flows compare with the full year?

Ganga Papers India’s Rs 5.96 crore operating inflow in the first half of 2026-27 contrasts with an Rs 1.92 crore operating outflow for the year ended March 31, 2026. The completed 2025-26 year included an Rs 7.80 crore inventory cash outflow and an Rs 5.04 crore increase in trade and other receivables, partly offset by an Rs 4.23 crore contribution from trade and other payables.

The September 2026 half-year figures mark a change in inventory direction, from cash use in the preceding full year to a Rs 6.04 crore release. Receivables remained a cash use in both periods, rising by Rs 11.01 crore in the half year after increasing by Rs 5.04 crore in 2025-26, while payables continued to provide cash at Rs 7.65 crore versus Rs 4.23 crore.

Conclusion

Ganga Papers India converted operating cash flow from a Rs 3.00 crore outflow in the September 2025 half year to a Rs 5.96 crore inflow in the September 2026 half year. Higher operating profit before working-capital changes, an Rs 6.04 crore inventory release and an Rs 7.65 crore payables contribution outweighed the Rs 11.01 crore increase in receivables.

The next disclosed financial checkpoint is Ganga Papers India’s subsequent quarterly result after September 30, 2026. The reported items to watch are whether trade receivables of Rs 51.04 crore convert into cash, whether inventory remains below the March 2026 balance of Rs 24.38 crore, and whether financing outflows continue after the Rs 7.89 crore half-year outflow.